On 19 February 2018, the OECD issued a consultation document, outlining potential situations where the misuse of CBI/RBI schemes poses a high risk to accurate CRS reporting and seeking public input both to obtain evidence on the misuse of CBI/RBI schemes and on effective ways for preventing such abuse.
Today, OECD addresses the misuse of CBI/RBI schemes in a press release and Public comments received on misuse of residence by investment schemes to circumvent the Common Reporting Standard is available for download as pdf. Several service providers and Governments have provided inputs to the OECD consultation document.
OECD has wide range of proposals for further addressing the misuse of RBI/CBI schemes, including:
1) comprehensive due diligence checks to be carried out as part of the RBI/CBI application process,
2) the spontaneous exchange of information about individuals that have obtained residence/citizenship through such a CBI/RBI scheme with their original jurisdiction(s) of tax residence; and
3) strengthened CRS due diligence procedures on financial institutions with respect to high risk accounts.
The OECD expressed they will take the next step in addressing the issue, when experts from OECD and G20 countries meet in Paris this May to further elaborate actions to be taken to effectively address the misuse of CBI/RBI schemes.
Source:
http://www.oecd.org/ctp/oecd-addresses-the-misuse-of-residence-citizenship-by-investment-schemes.htm
